Site Selection and Layout Planning

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Site Selection and Layout Planning

• CH 9

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9.1 Objectives

• List the factors involved in deciding on a
  community in which to locate a business.
• Identify the factors to consider when selecting a
  business site.
• Describe the resources that can be used in
  finding potential business sites.
• Explain the steps involved in analyzing potential
  sites for a business and choosing between those
  sites.
• Describe the advantages of starting a business at
  home or in an incubator.

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Factors in Community Selection

• As an entrepreneur, the decision of where to
  locate your new business is an important one.
•  
• A location can determine who sees your business
  and how easily customers can get to it.
• Factors to consider when selecting a community
  include
• economic base
• financial incentives
• population makeup
• labor supply

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Is the Economic Base Favorable?

• ECONOMIC BASE the major industries that provide
  employment in an area
• First, you should determine the communitys
  economic base
• That base can be either primarily industrial or
  primarily service-oriented
• What is major source of income in a community?
• Is it industrial, service oriented or some other
• source of income?
• Is this income growing or shrinking?

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Are There Financial Incentives?

• incentive a reward or advantage that helps
  businesses, including lower taxes, cheaper land,
  and employee training programs
• A community may try to attract new businesses to
  locate there by offering a special incentive.
• Incentives include Lower taxes, cheaper land
  and employee training programs.

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What Is the Makeup of the Population?

• Trends such as aging populations or young
  families can affect businesses.
•  
• These trends determine who will spend, how much
  they will spend, and what types of products or
  services they will want.
• Demographics and population size can tell you if
  a location matches your target market.

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What Is the Makeup of the Population?
CENSUS TRACT a small geographic area into which
a state or country is divided for the purpose of
gathering and reporting census data. Access
the Census Bureaus Census 2010 Web site to
research the demographics of a census tract that
interests you.
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Does the Labor Supply Match Your Needs?

• When considering a community, consider your labor
  needs and how well the local labor pool meets
  those needs.
• Business owners need to consider
• how many employees they need
• If the labor pool meets their needs
• if the available pool has the appropriate skills

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Criteria for Site Selection

• Once you determine that a community is suitable
  for your business, you can begin looking at
  sites.
•  
• The factors to consider and the criteria used to
  judge sites vary with the type of business
  activity

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Retail Business Considerations

• Retail businesses need to determine their trade
  area in order to be accessible to their target
  market.
• trade area the region or section of the
  community from which a business draws customers

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Retail Business Considerations

• Once you pinpoint a community you want to serve
  and determine your businesss trade area, examine
  these issues
• number and size of competing businesses
• nature of the competition
• character of the area
• accessibility and traffic

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Service/Wholesale Business Considerations

• Service and wholesale businesses have similar
  needs to those of retail businesses.
•  
• However, many service and wholesale businesses do
  not have customers coming to their business sites
  and do not need expensive, high-profile
  locations.

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Manufacturing/Extraction Business Considerations

• Manufacturing/extraction businesses need to be
  accessible to sources of supply and
  transportation and are subject to local zoning
  laws.
• INDUSTRIAL PARK an area set aside in a
  community for industrial use
• usually located close to major transportation
  routes.

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E-Business Considerations

• Location and space are not major considerations
  for an e-business because electronic business
  sites can be located almost anywhere and require
  little space.
•  
• However, larger operations need more space for
  equipment, personnel, and shipping.

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Locating Potential Sites

• There are a number of ways to locate potential
  business sites.
• Read the classified sections of newspapers.
• Consult with realtors who specialize in business
  properties.
• Conduct visual surveys by driving through
  prospective communities.
• Network with personal or business contacts.

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Site Analysis and Decision Making

• Once an entrepreneur identifies possible sites
  for a business, he or she must consider three
  things before making a decision
• the surrounding area
• the building
• the costs of buying, building, or leasing

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Surrounding Area Analysis

• Surrounding areas should be evaluated by the
  same criteria used for site selection
• number and size of competing businesses
• nature of the competition
• character of the area
• accessibility and traffic

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Building Evaluation

• The building must be large enough to take care of
  present needs and to allow for expansion.
•  
• Check the buildings interior to see how it meets
  your needs and the exteriors construction,
  soundness, appearance, and parking.

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Lease, Buy, or Build?

• Most experts say that leasing
  is best for a beginning business.
• Leasing limits liability
• Leasing has the least amount of start-up costs
• Leasing costs are tax deductable
• However, buying or building is least expensive
  for a long-term investment

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Making Your Decision

• For each of the possible sites, compare these
  variables
• cost
• advantages and disadvantages
• desirability

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Alternative Sites

• Two sites that do not fit the traditional mold
  are the home-based business and the incubator.
• INCUBATOR an enterprise that is set up to
  provide flexible and affordable leases, office
  space, equipment, management assistance,
  mentoring assistance, and access to financing for
  new businesses

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Layout Planning

• 9.2 OBJECTIVES
• List the steps in layout planning that are common
  to all businesses.
• Describe the layout needs for each type of
  business.
• Discuss the final details of layout planning.

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Physical Layout

• A well-planned layout can mean a more efficient
  operation, a more appealing sales floor, and
  greater customer convenience.
• LAYOUT a floor plan or map that shows the
  interior and exterior arrangement of a business,
  including such items as display cases, lighting
  fixtures, traffic patterns, landscaping, and
  parking spaces

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Physical Layout Six Steps in Layout Planning
Define the objectives of the facility.
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Layout Needs and Possibilities

• Although the steps in layout planning are the
  same for all businesses, the options and
  considerations are not.
•  
• Different types of businesses have different
  operational needs.

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Manufacturing Businesses
production processes
production sequence
Layout Considerations for Manufacturing
Businesses
space requirements
materials flow
environmental needs
control
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Manufacturing Businesses Types of Manufacturing
Layouts
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Manufacturing Businesses

• In a product layout, all machines and supporting
  activities are arranged along a product flow
  line.
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• As products come down the line, something is done
  to them at each workstation.
• WORKSTATION an area in a business with
  equipment for a single worker

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Retail Businesses
products to be sold
projected clientele
sales per square foot of selling space
Retail LayoutConsiderations
aisle exposure
sales value of area within store
product coordination
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Wholesale Businesses

• When planning the layout of a wholesale business,
  storage and space utilization are the most
  important considerations.
• When planning for storage, follow these
  guidelines
• Store popular items near shipping points.
• Store items together that were received together
  and will be shipped together.
• Provide a wide variety of storage space.
• Assign storage space on the basis of handling
  ease and popularity.

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Service Businesses

• The physical layout of a service business depends
  largely on the specific service it provides.
•  
• There is no prescribed set of guidelines or
  patterns for these enterprises.

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Extraction Businesses

• Like service businesses, extraction firms have
  unique layouts.
•  
• They share a few common features an office area,
  storage areas for equipment and supplies, and the
  extraction business site itself.

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E-Businesses

• The layout of an e-business depends on its site
  and its operations.
• If the e-business ships products, storage and
  shipping areas are needed.

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The Components ofan Effective E-Commerce Site

• The Internet has developed into an enormous
  consumer network with many e-commerce sites.
•  
• A successful e-commerce site incorporates good
  content and design, offers credit card
  processing, and has a security certificate.

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E-Commerce Site

• payment gateway software that automatically
  processes credit-card information so that it does
  not have to be manually typed in
• real-time transaction a process that instantly
  transfers funds from buyer to seller
• security certificate a credential issued by a
  third-party company that assures the user that
  all transactions made on a Web site are private
  and safe
• sticky content the information and features on a
  Web site that gives users a compelling reason to
  visit it

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Finishing Touches

• Once a business owner chooses a particular
  layout, he or she can begin planning the
  finishing touches.
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• Such details include planning interior design
  features, as well as alterations or improvements
  to the facade.
• FACADE the face or front of a building

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Planning for Office Space

• You have two options to consider when planning
  office space
• open office layout best if cost, space, employee
  supervision, or access to files and equipment are
  important
• closed office layout if privacy and noise
  reduction are of primary concern

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Planning for Office Space

• You can define the traffic patterns of an office
  space with appointments.
• APPOINTMENTS the furniture, equipment, and
  accessories contained in a building